# Business Studies Grade 12 NSC November 2012 QP (Eng)

> Grade 12 Business Studies question paper from the NSC November Exam 2012 (English), 10 pages. Read online or download the free PDF.

- Page: https://www.hlayiso.com/library/business-studies-nov-2012-eng/d577602b-646e-40d3-b066-836655344fb7
- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 12
- Document type: Question paper
- Year: 2012
- Exam period: NSC November Exam
- Curriculum: CAPS
- Pages: 10

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## About this document

Business Studies · Grade 12 · NSC November Exam · 2012. Question paper, 10 pages. Read online or download the PDF.

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                                    GRAAD 12

                                  NATIONAL
                             SENIOR CERTIFICATE

                                    GRADE 12

                                BUSINESS STUDIES

                                 NOVEMBER 2012

MARKS: 300

TIME: 3 hours

                       This question paper consists of 10 pages.

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Business Studies                            2                               DBE/November 2012
                                           NSC

INSTRUCTIONS AND INFORMATION

Read the following instructions carefully before answering the questions.

1.        This question paper consists of THREE sections and covers all learning
          outcomes.

          SECTION A:      COMPULSORY
          SECTION B:      Consists of THREE COMPULSORY questions
          SECTION C:      Consists of FOUR questions
                          Answer any TWO of the four questions from this section.

2.        Read the instructions for each question carefully and take particular note of
          what is required.

3.        Number the answers correctly according to the numbering system used in this
          question paper.

4.        Except where other instructions are given, answers must be in full sentences.

5.        Use the mark allocation and nature of each question to determine the length
          and depth of an answer.

6.        Use the table below as a guide for mark and time allocation when answering
          each question.

                 SECTION                  QUESTION          MARKS              TIME
          A: Objective type
             questions                           1             40             30 min.
             COMPULSORY

          B: THREE direct/indirect               2             60             30 min.
             type questions                      3             60             30 min.
             COMPULSORY                          4             60             30 min.

          C: FOUR essay-type                     5             40             30 min.
             questions                           6             40             30 min.
             CHOICE (Answer any                  7             40             30 min.
             TWO.)                               8             40             30 min.

                      TOTAL                                   300            180 min.

7.        Begin the answer to EACH question on a NEW page, for example
          QUESTION 1 – new page, QUESTION 2 – new page, et cetera.

8.        Non-programmable calculators may be used.

9.        Write neatly and legibly.

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Business Studies                               3                         DBE/November 2012
                                              NSC

SECTION A (COMPULSORY)

QUESTION 1

1.1       Various options are provided as possible answers to the following questions.
          Choose the answer and write only the letter (A–D) next to the question
          number (1.1.1–1.1.10) in the ANSWER BOOK, for example 1.1.11 B.

          1.1.1       Which ONE of the following is an example of horizontal
                      integration?

                      A   Barberton Abattoir purchases a number of bookstores.
                      B   Nalini's Motor Manufacturer purchases Tina's Shoe Factory.
                      C   Dunlop's tyre-manufacturing company purchases a tyre fitment
                          enterprise.
                      D   A large bookseller, Glen Bookstores, purchases a number of
                          small independent bookstores.

          1.1.2       According to Michael Porter's model, which ONE of the following
                      forces is responsible for competition in a particular industry?

                      A   Environmental instability and change
                      B   The influence of macro-environmental variables
                      C   The bargaining power of suppliers and consumers
                      D   Complexity and an unpredictable environment

          1.1.3      A ... is a circular representation where the information is divided
                     into different categories and each segment represents a portion of
                     100%.

                     A    line graph
                     B    histogram
                     C    pie chart
                     D    bar graph

          1.1.4       Blue and Berry's Cellphone Repair Shop is a ... and therefore has
                      unlimited liability.

                      A   partnership
                      B   public company
                      C   close corporation
                      D   private company

          1.1.5      When a senior manager coaches a junior manager 'under his/her
                     supervision' it is known as ...

                     A    recruitment.
                     B    placement.
                     C    evaluation.
                     D    mentoring.

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Business Studies                               4                             DBE/November 2012
                                              NSC

          1.1.6       When the actual performance of a manager is compared to his/her
                      expected performance in order to increase his/her salary, the
                      process is known as ...

                      A   human resources planning.
                      B   recruitment.
                      C   performance appraisal.
                      D   placement.

          1.1.7       Which ONE of the following is documented in the King's Code III
                      report?

                      A   Partners in a partnership
                      B   Members of a close corporation
                      C   The owner of a sole trader
                      D   The board of directors of companies

          1.1.8      The process of generating something new that is valuable and
                     useful is referred to as ...

                     A    conflict management.
                     B    creative thinking.
                     C    labour relations.
                     D    stress management.

          1.1.9       Filling vacancies in a business enterprise with existing employees
                      is known as …

                      A   advertising.
                      B   internal recruitment.
                      C   external recruitment.
                      D   job specification.

          1.1.10      South African Airways (SAA) has taken the decision to expand into
                      low-cost vehicle hire. SAA plans to roll out this new product offering
                      within the next five years. This is an example of a/an ... goal.

                      A strategic
                      B operational
                      C functional
                      D tactical                                                    (10 x 2)       (20)

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Business Studies                              5                              DBE/November 2012
                                             NSC

1.2       Choose the correct word(s) from those given in brackets. Write only the
          word(s) next to the question number (1.2.1–1.2.5) in the ANSWER BOOK.

          1.2.1       (Market/Product) development takes place when a business
                      enterprise introduces new products in existing markets.

          1.2.2       The rate at which the Reserve Bank lends money to commercial
                      banks is known as the (prime/repo) rate.

          1.2.3       (Brainstorming/Empty Chair) is a creative problem-solving
                      technique in which several people think about a single problem and
                      suggest ideas that could lead to a solution.

          1.2.4       The (marketing/public relations) function creates a favourable
                      image of the business.

          1.2.5       Job   (description/specification)   outlines    the      duties      and
                      responsibilities of an employee.                                  (5 x 2)     (10)

1.3       Choose a description from COLUMN B that matches a term in COLUMN A.
          Write only the letter (A–G) next to the question number (1.3.1–1.3.5) in the
          ANSWER BOOK, for example 1.3.6 H.

                     COLUMN A                                 COLUMN B
          1.3.1 Strikes                         A     South Africa's inflation rate is
                                                      steady at 4,6%
          1.3.2 Johannesburg Securities
                Exchange                        B     more organisations are looking for
                                                      alternative energy sources such as
          1.3.3 Physical environment                  solar power

          1.3.4 Verbal abuse                    C     workers work at a slower pace
                                                      than normal so that they
          1.3.5 Entrepreneur                          deliberately do not meet the
                                                      production quota

                                                D     comments that cause discomfort or
                                                      offence in the workplace

                                                E     serves as a link between the
                                                      investors and entrepreneurs

                                                F     organised stay-away from work by
                                                      workers whereby they are
                                                      prepared to forfeit their income

                                                G     takes calculated risks
                                                                                        (5 x 2)      (10)

                                                                     TOTAL SECTION A:                 40

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Business Studies                             6                           DBE/November 2012
                                            NSC

SECTION B (COMPULSORY)

QUESTION 2

2.1       Describe FIVE ways in which a presenter should handle feedback and
          respond to questions after a presentation.                                           (10)

2.2       State FIVE roles of the Sector Education and Training Authorities (SETAs).           (10)

2.3       Read the case study below and answer the questions that follow.

                     SMART CREATIONS CLOTHING (SCC) MANUFACTURER
          Smart Creations Clothing Manufacturer is situated in a rural area. They
          manufacture a range of clothing aimed at a target market in the 18- to 28-year
          age range, earning an income of more than R130 000 a year. Recently,
          management has noticed a decline in sales and that their customers, the
          large clothing retailers, can import clothing from China at a much cheaper
          price.

          Smart Creations Clothing Manufacturer had to retrench staff to stay in
          business. Employees were unhappy with management as they did not follow
          the correct procedure.

          Some of the machinery at Smart Creations is outdated. The new
          computerised machinery from Japan is too expensive because of the
          unfavourable exchange rate.

          2.3.1       Identify the sector in which Smart Creations Clothing (SCC)
                      Manufacturer operates.                                                   (2)

          2.3.2       SCC Manufacturer wants to evaluate whether the strategies they
                      implemented were successful. Describe THREE steps that Smart
                      Creations Clothing Manufacturer will follow when evaluating these
                      strategies.                                                              (6)
          2.3.3       Use the PESTLE model to identify the challenges facing Smart
                      Creations Clothing Manufacturer. Suggest a strategy that may be
                      implemented to overcome each challenge.
                      QUESTION 2.3.3 must be answered according to the headings in
                      the table below.

                           PESTLE            CHALLENGE          STRATEGY TO
                           FACTOR                              OVERCOME THE
                                                                 CHALLENGE
                       Economic
                       Social
                       Legislation                                                             (12)

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Business Studies                              7                            DBE/November 2012
                                             NSC

2.4       Read the case study below and answer the questions that follow.

           Siyethemba Mvuyane bought a house in 2011 at a market value of
           R400 000. Due to financial constraints he decided to insure it for
           R300 000. Last month his house was damaged in a fire during a community
           protest and the damages amounted to R100 000.

          2.4.1       The insurance company has decided to pay Siyethemba for
                      damages incurred. Calculate the compensation that Siyethemba
                      will receive from this claim. Motivate why he will receive this
                      amount.                                                                       (6)

          2.4.2       Explain to Siyethemba the principle of reinstatement and also why
                      it is NOT applicable to his insurance claim.                                  (4)

2.5       Answer the following questions on the Employment Equity Act, 1998 (Act 55
          of 1998).

          2.5.1       State the main purpose of the Employment Equity Act.                          (2)

          2.5.2       Evaluate the impact of this Act on business enterprises.                      (4)

          2.5.3       Propose TWO ways in which government can contribute to the
                      successful implementation of this Act.                                        (4)
                                                                                                    [60]

QUESTION 3

3.1       Outline the steps that an employee must follow when he/she is unfairly
          dismissed by his/her employer.                                                            (10)

3.2       Read the scenario below and answer the questions that follow.

          Peter Williams is a manager at ABC Suppliers. He does not consult his
          employees, but expects them to carry out instructions correctly. He makes his
          own decisions, which are influenced by the rules and regulations of the
          business.

          3.2.1      Name the leadership style illustrated in the scenario above.                   (2)

          3.2.2       Identify any THREE situations where the leadership style in
                      QUESTION 3.2.1 is successful.                                                 (6)

          3.2.3       Justify why leaders should use different management styles when
                      addressing different challenges.                                              (4)

3.3       Tabulate TWO differences between a manager and a leader.                                  (8)

3.4       Distinguish between mediation and arbitration.                                            (4)

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Business Studies                                8                         DBE/November 2012
                                               NSC

3.5       Briefly explain FIVE functions of trade unions.                                       (10)

3.6       Examine the impact of quality on small and large businesses.                          (10)

3.7       Evaluate the implications of the National Credit Act, 2005 (Act 34 of 2005)
          (NCA) for businesses.                                                                 (6)
                                                                                                [60]

QUESTION 4

4.1       State THREE functions of workplace forums.                                            (6)

4.2       Read the scenario below and answer the questions that follow.

                          AFRICAN FINANCE CORPORATION LIMITED

          The African Finance Corporation Limited (AFC Ltd.) is mandated to promote
          development in South Africa. Their primary focus is to increase the
          participation of black people in all sectors of the economy, to make a positive
          impact on job creation, skills development and training, as well as to
          encourage preferential procurement. To achieve this, AFC Ltd. engages in a
          number of activities across provinces.

          4.2.1       Preferential procurement (buying) is one of the pillars of BBBEE.
                      List THREE other pillars.                                                 (6)

          4.2.2       Explain the meaning of preferential procurement as stated in the
                      article.                                                                  (4)

          4.2.3       How does AFC Ltd promote BBBEE development in South Africa?
                      Motivate your answer.                                                     (4)

4.3       Explain the Unemployment Insurance Fund (UIF) under the following
          headings:

          4.3.1       The purpose of the UIF                                                    (4)

          4.3.2       How contributions are made to this fund                                   (4)

4.4       Discuss how the following factors will have an effect on the success and/or
          failure of a company:

          4.4.1       Capital                                                                   (4)

          4.4.2       Taxation                                                                  (4)

          4.4.3       Legislation                                                               (4)

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Business Studies                            9                            DBE/November 2012
                                           NSC

4.5       One of your employees, who is well qualified and experienced, has an alcohol
          problem. Describe measures that you, as manager, will take to ensure the
          wellbeing of the employee.                                                            (8)

4.6       Analyse FOUR types of conflict which may occur in the workplace.                      (12)
                                                                                                [60]
                                                                  TOTAL SECTION B:              180

SECTION C

Answer any TWO questions from this section.

NOTE: Write down the QUESTION NUMBER only. The answer to EACH question
      must begin on a NEW page, for example QUESTION 5 on a NEW page,
      QUESTION 6 on a new page, et cetera.

QUESTION 5

South Africa has many social problems or socio-economic issues that affect all its
citizens. Many businesses help to solve these problems by investing their time, money
and skills in social programmes.

Evaluate the nature, purpose and implementation of corporate social investment (CSI).
Examine its impact on South African businesses and their communities.                           [40]

QUESTION 6

James and Nontokozo run a successful partnership at Empangeni known as
JN Partners. They want to increase their wealth and capital by investing some of the
business income they have generated over the past five years.

As a financial advisor of JN Partners, evaluate the different factors that must be
considered when making informed investment decisions. Also explain FIVE types of
formal investment opportunities and elaborate on the risk factors for each.                     [40]

QUESTION 7

Some of Shoprite's largest suppliers of food and beverage products include Pioneer
Foods, Tiger Brands and Premier Foods. These suppliers are often in the news for
price fixing and consumer exploitation.

With reference to the above statement, explain the term ethics and give reasons why
price fixing is unethical. Also evaluate taxation, the unauthorised use of funds and the
abuse of work time as issues that challenge the ethical behaviour of businesses and
make recommendations for the improvement of each issue.                                         [40]

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Business Studies                          10                           DBE/November 2012
                                         NSC

QUESTION 8

Zander Fourie has been appointed as financial manager. You are the human
resources manager. Discuss Zander's induction process and analyse the main
provisions of the Basic Conditions of Employment Act, 1997 (Act 75 of 1997) that will
apply to Zander's appointment.                                                             [40]

                                                                TOTAL SECTION C:           80
                                                                   GRAND TOTAL:            300

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